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International Journal of Applied ISSN 0973-4562 Volume 12, Number 23 (2017) pp. 13861-13867 © Research Publications. http://www.ripublication.com The Relationship between and : The Case of

Dr. Demet Tüzünkan Assistant Professor Woosong College Sol International & Department. 171, Dongdaejeon-ro, Dong-gu, Daejeon, Korea, 34606. 0000-0003-0440-294X

Abstract Innovation can be an , practice, process, or that turns a problem-solving idea into practice (Ottenbacher and Innovation, derived from the Latin word "innovatus", means Gnoth, 2005: 206). Indeed, Drucker considers innovation as to turn an idea into a product that can be sold or developed an opportunity (Sipe and Testa, 2009: 2). Therefore, ( or services) (TÜSİAD, 2003:53). Innovation means to innovation is not just a concept for concrete products, but also start using new methods in the social, cultural and for that provide services to customers, such as administrative environment and it is covered with words such or hotel . as renovation or renewal. However, the meaning of innovation is too broad to be expressed in a single word. According to the In today's increasingly competitive environment, scientists, Oslo , innovation is the implementation of a new or researchers and practitioners focus on the necessity and significantly improved product (good or ), or process, a importance of innovation to achieve sustainable competitive new method, or a new organizational method in advantage and focus on improving products, processes, practices, workplace or external techniques or procedures and constantly changing their relations and thus transforming it into economic and social managerial understandings (Oerlemans, Buys and Pretorius, benefits (Demirkaya ve Zengin, 2014:107). The aim of this 2001). Nevertheless, the innovation-related processes study is contributing a view to innovative usages in the conducted by enterprises allow one side to reduce the costs of tourism . enterprises and increase their qualities, on the other side to meet the ever-changing needs and desires of the consumers

(Riel, 2005: 493). INTRODUCTION While the innovation process has the advantages of getting a Several definitions of innovation have been made in the competitive edge for enterprises, increasing and literature; Jorde and Teece (1992:76) defined innovation as image, and allowing customers to fully meet their needs and exploring, developing, improving, embracing and demands, it can face some obstacles from time to time commercializing new processes, products, organizational because innovation process has a complex, risky, and difficult structures and methods, while Kotler, Armstrong, Saunders to predict structure. There are many factors affecting and Wong (1999:603) described as the development and innovation in enterprises (Erdem, et al., 2013: 79). The lack of marketing of new , products and that top management support and motivating people to adopt customers perceive; in the case of Harrison and (2005: innovative , the need to develop ideas that cannot be 287) with Elçi and Karatayli (2008: 1) expressed innovation easily imitated by competitors and the need to preserve as the introduction of new products, methods and processes of (Oke, Burke ve Myers, 2004:38-40), the a product that a customer does not already know or a new resistance of employees to innovation, the diversity of quality of an existing product, the introduction of new customer wants and anticipations are the elements that can production, methods and processes, finding new markets for prevent innovation. On the other hand, factors such as the provision of resources for business activities, the innovation, failure in project management, inadequate reorganization and redesign of the business. Focusing on resources, time pressure and can hamper or technology, Mogee and Schact consider innovation as prevent the implementation of innovation activities (Wong "process of creating an industry, product or production and Pang, 2003: 30). improvement" (Vatan ve Zengin, 2014:513), while according There are several reasons for businesses to innovate. These to , innovation is described as "the driving reasons are as follows (Vatan and Rich, 2014: 514); force of development" (Işık ve Meriç, 2015:4). Similarly, Tutar and colleagues (2007: 196) consider innovation as the - Desire to grow conversion of new ideas into the . - Trying source and capabilities in a different field - Economical scales and opportunities

13861 International Journal of Applied Engineering Research ISSN 0973-4562 Volume 12, Number 23 (2017) pp. 13861-13867 © Research India Publications. http://www.ripublication.com

- Intercorporate financial situation al., 2015: 179). Thus, more accurate operational decisions can - power be made. - Personal management reasons “Smart” technology, which we are constantly intertwined with Enterprises choose the type of innovation according to the applications such as smartphones and smart cards in everyday reasons for development. For instance, an enterprise that life, is supported by various physical infrastructures and wants to grow can choose to make innovations to the process confronts with examples such as intelligent home, intelligent or to market. factory. Even within the tourism industry, the concept of "smart ", which is equipped with modern as a pillar of innovation, effectively and fairly managed without INNOVATION IN TOURISM SECTOR AND SMART consuming resources in the concept of is TOURISM derived. Smart use information and technologies at the highest level to increase resource In the tourism sector, different companies such as , efficiency and reduce consumption (Gretzel, et all., , agencies, companies and 2015:559). These innovations increase the for companies provide different services. The the city dwellers, that is the local people. (Lopez de Avila, tourism sector is a demand-driven and growing sector with 2015:24). demand (OECD, 2006: 33). However, for tourists participating in tourism activities and demanding the services Smart cities benefit from information and communication of these companies, tourism is not just about a business that technologies (Hojer and Wangel, 2014: 7), which are digital in offers tourism products. Due to the abstractness of tourism the dimensions of smart living, smart mobility, smart products, the socio-cultural structure of the local people and governance, smart people, smart environment and smart psychology and habits of the tourists also affect the tourism economy. The smart city concept covers multiple industries, experience. Therefore, companies in the sector are in including tourism. The smart tourism is an important part and competition with each other to satisfy the tourists and ensure a practical attempt of the smart city strategy (Guo, 2014:55). the continuity of the tourists. For this reason, innovation is As a matter of fact, these dimensions can also be applied needed to gain a . directly in tourism destinations, so it can be said that smart city concept gives rise to smart tourism concept. Another reason for innovation-oriented tourism is to increase and encourage growth. This can only The UNWTO underlines the links between modern tourism happen when the customer is satisfied and integrated with it. development and new tourism destinations (UNWTO). It is Particularly, individuals who participate in mass tourism impossible to discern modern tourism development from the provide their knowledge by spreading their experiences. innovations of the modern world where information and Innovations in information and communication technology in communication technologies are heavily used. In this tourism allow enterprises to analyze this information from connection, Gretzel et al. (2015) emphasizes that both customers more effectively and efficiently (OECD, 2006: 58). information and telecommunications in the tourism sector are This allows the creation of databases for innovations that need mobile and modernized by integrating with global to be done in the product, process, market or organization. channels, central reservation systems, social media adaptation, web-based technologies. New tourism destinations are a In this context, the tourism industry cannot be considered concept that has been created in the smart tourism of the smart separately and independently from the technology. city concept under the smart destination name. What is smart Technology enters tourism industry via Computer tourism? Reservations Systems (CRS), Global Distribution Systems (GDS), and Smart Technologies (connected through Although there is not a unique definition for smart tourism, sensors and data clouds) (Koo et al.,2015:99). The concept of besides intelligent tourism, tourism and e-tourism, Smart is used in technological, economic and social the combination of ICT and tourism is becoming popular developments that are nourished by technological about the incorporation of social media or mobile internet infrastructures. In these developments, the most important with tourism (Chao,2015). In fact, smart tourism is a major indication of addressing about the concept of smart is that contributor to the development of the tourism industry in technological perceptions, massive data, open data, new ways consequence of the mobile technology is in the hands of of connection and knowledge exchange are being used in the potential tourists with opportunities to make online bookings, developments. The concept of Smart brings advantages in maps, restaurants or online bookings, to buy airplane tickets, communication and synchronization between individuals or to catch campaigns. Individuals can see, know and choose rather than individual benefits. Because smart their tourism alternatives without losing time and money. systems make the world a small village, accelerate According to Hunter, et all., (2015:110), smart tourism makes communication, provide data integration and share, and information more interactive and more reflective of the interpret and optimize complex analytical models (Gretzel, et interests of the user, makes new capabilities and resources available to the traveler and to destination based stakeholders.

13862 International Journal of Applied Engineering Research ISSN 0973-4562 Volume 12, Number 23 (2017) pp. 13861-13867 © Research India Publications. http://www.ripublication.com

Although there is no single definition, Smart tourism focuses Source: Chao, Z. (2015). Study on Innovative of on 4 topics. Firstly, smart tourism provides the adaptation of Chinese Smart Tourism Products. p.24 'smart' technologies with tourism, the internet, cloud computing, mobile communication technologies, artificial intelligence, fast wireless communication, GIS (Geographic As seen in Figure 1, tourists, , businesses and Information System) and VR (Virtual Reality). Secondly, departments for smart tourism are receiving a smart tourism services are not only for tourists but also for the response from the same information exchange center. IEC is state, local people and tourist business owners. As a third, powered by artificial intelligence, cloud computing and IoT smart tourism offers information access opportunities to (Internet of Things). The information is easy to access and tourists and the public at an instant, ultimately being 'smart' streamlined. Demos, statistics, reports, requests are shared in has a supporting role for systematic, intensive, knowledge this IEC and accessible to everyone. sharing and innovation (Tu and Liu, 2014). As a result, with the fast improvement of information In this context, e-Tourism and Smart Tourism concepts which technology and mobile Internet, more technology combines are available to be mixed in conceptually are compared in the with smart tourism according to different needs of different table below (Gretzel, et all., 2015:182); issues.

Table 1: Smart Tourism vs. e- Tourism SMART EXAMPLES IN TOURISM

e-Tourism Smart Tourism Enterprises are looking for ways to continually improve the quality of their products and services which can lead to Sphere Digital Bridging digital & physical success. Tangible products include goods such as alarm Core Sensors & smartphones clocks, curtains or hairdryers in hotel rooms, services that are Technology intangible include facilities such as the speed of internet in the Travel Phase Pre-&post travel During trip hotel or the period of the cleaning of the room. For the Lifeblood Information Big data satisfaction of the customers, these products and services Paradigm Interactivity Technology-mediated co- should be improved from time to time or replaced with creation innovations within the scope of technological changes. Structure Value chain/ Particularly, the feedback from customers is an important intermediaries resource for these developments. The other way should be Exchange B2B, B2C, C2C Public-private-consumer keeping the eyes open for challenges, following new trends, collaboration learning new technology and products (O'Shannessy and Minett, 2008: 257). As a matter of fact, enterprises do not remain behind the competition nor lose the customer. In Table 1 it is seen that smart tourism connects the physical world with the digital world by creating a link. If e-tourism is Nowadays, new products and services are being developed in used before and after a trip on the internet by linking to consideration of technological developments and innovations websites, smart tourism can be used during travel and through in the smart tourism gateways. Some of these are the many phone or tablet that can be accessed from many sources. following;

1. Online Social Media Websites (such as , Booking.com) Whereas in the past, travel agencies or intermediaries had chosen from a limited number of hotels selected from catalogs, nowadays hotel, airplane and restaurant reservations can be made anywhere in the world through social media channels. Customers and potential customers can easily find places in the standard they want, within the price ranges they choose from the regions. With the implementation of Smart systems in the tourism sector, increasing social media channels enable online booking, as well as positive or negative consumer comments Figure 1: Structure of Smart Tourism to be tracked. Thus, ideas can be formed on consumers' minds even for small hotels that are not included in the famous

13863 International Journal of Applied Engineering Research ISSN 0973-4562 Volume 12, Number 23 (2017) pp. 13861-13867 © Research India Publications. http://www.ripublication.com chains and are not recognized, and these hotels can be starless hotel was rated 62 and 5-star hotels were rated 1000 translated on travel. these hotels can be preferred for traveling on average. (Vermeulen and Seegers, 2009:123-124). In this case, it might be said that the inclusion of online technologies has left behind the best understanding of traditional 5-star hotels. 2. Use of Technology in (such as tablets in guest rooms and restaurants, Smartphone keys) One of the types of innovation is product innovation as it is documented in the first part of the study. In such innovations, significant improvements are made to the existing products to provide improvements in terms of efficiency and speed. Methods used in process innovations which are other types of innovation are being improved. The starting points and objectives of such innovations in should be to increase customer satisfaction. Because increasing customer satisfaction will bring continuity, loyalty and competitive advantage to enterprises. In this context, the technological innovations that can be used or used in hospitality enterprises are confronted as improvements in products and processes. For example, nowadays people often travel with their smartphones, tablets and/or computers. During their , these people need internet service in their Figure 2: Booking.com Example - 1 accommodation. While many hotels have previously offered internet services at certain rates per hour but now they are starting to give this service free of charge in various parts of In the example of Figure 2, when looking for a hotel to stay the hotel (lobby, restaurants, fitness center, guest rooms, etc.) for June in İzmir-Çesme on April 13, 2017, it is seen that with the awareness of their needs. Smartphones now also starless hotel received 9.7 points out of 10 within the scope of function as room keys in some hotels. consumer comments and evaluations and there is no room at Hotels will increasingly install smart room access systems that the hotel even though the entrance date to the hotel is only 2 allow guests to unlock their doors by simply swiping their months. phones across a keyless pad on the door. Starwood (owner of the Sheraton, Weston and “W” hotel chains) has already upgraded 30,000 room locks across 150 hotels with this system and Hilton will be implementing a similar system (Aurecongroup). With this system, guests will not lose their keys and front office workers will not be involved in the key exchange process. In another example of innovation in hotel rooms; the Aria and hotel located in Las Vegas allows hotel guests to control the lights, curtains, radios, , air conditioning in a room on a tablet. The tablet also provides charging via USB ports and can turn on and off the "Please do not disturb" light outside the room door.

Figure 3: Booking.com Example - 2

In Figure 3 it is seen that while only 5-star hotels are being browsed for the same dates, the rooms can be found even though there is a lot of demand and these hotels have lower scores than a starless hotel in the comments and ratings of the consumers. However, it will be useful to consider the number of consumers who are present when making decisions. The

13864 International Journal of Applied Engineering Research ISSN 0973-4562 Volume 12, Number 23 (2017) pp. 13861-13867 © Research India Publications. http://www.ripublication.com

for claustrophobics compared to many (Businessinsider).

Figure 4: Tablet Application in Hotel Rooms Figure 6: Amsterdam City Hub In another example of innovation in the hotel rooms of Figure Lastly, India's first capsule hotel was opened in Mumbai-India 4; the Aria Resort and Casino hotel located in Las Vegas in March 2017. allows hotel guests to control the lights, curtains, radios, The compartments are slightly larger than the other examples televisions, air conditioning in a room on a tablet. The tablet and there are TVs in these compartments (Dnaindia). also provides charging via USB ports and can turn on and off the "Please do not disturb" light outside the room door (Businessinsider).

3. Specialist Accommodation (e.g. Capsule bed hotels) One of the innovations in hospitality today is accommodation in the capsule, first developed in in the 1970s (Kotaku) and then spread to the world. They are also known as Pol hotels. In capsule hotels which are considered as one of the reasonably priced accommodation types, the guests stay in box-like compartments where they can only lie down and sleep.

Figure 7: Capsule Hotel - Mumbai

4. Hotels of the Future (e.g.: Space hotels and robotic hotels) Nowadays, there are also hotels where robots are used. For instance, these robots bring towels to guests in the pool at the Aloft Cupertino hotel in California, pick up and place luggage at the Yotel in , and make check-in at the Weird Hotel in Japan (Businessinsider).

Figure 5: Capsule Hotel - Japan Instance

It is also possible to find capsule hotels in Amsterdam that have become a trend that started in Japan and spread rapidly in other countries of the world. In Figure 6, Amsterdam CityHub offers compartments reasonably priced, wireless internet access in each area and a panel of light and a window

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It is a fact that the tourism sector, which has a great economic and social importance throughout the world, is under the influence of contemporary innovation practices. The tourism sector which is human-focused by its is open to the continuation of customer satisfaction. It would be difficult for the sector to advance in an environment where customer satisfaction is not provided; changing technological and environmental conditions are ignored. For this reason, studies are being made on innovation applications. Nowadays both competitive environments and preferences of the consumers are constantly changing in the tourism sector. Under these conditions, tourism enterprises taking the pulse of the market and carry on with various innovations. Figure 8: Robotic Hotel - The Weird Hotel/Japan Innovation provides renewals and changes in the goods and services in the tourism sector as it is in every area, facilitates the

of tourism employees, helps to promote and marketing the In the future, it is anticipated that robots will clean the rooms unknown and incorporates the customer into the production and technological innovations will reduce the operating costs process. Current innovation practices are available in the of the hotels (Rentokil). tourism sector around the world as part of smart technology. The development of these examples in short and long term Those who predict the possibility of in the and transforming new ideas and into marketable future have developed the concept of the spaceship. In the ones in the sector is important for the future of tourism. Smart future, the space hotels that can be built in space would move technologies make the business life easier, shorten the at 27,500 km/h (17,000 mph), circling the planet every 90 duration of the work and even some professions can be minutes. Thus, 16 sunrises and sunsets would be visible. abandoned in time. It is, therefore, necessary to pay attention (BBC). to the need for human labor in tourism which is a labor- intensive industry while these inventions are being carried out. According to the WTTC, will the tourism sector, which is one of the leading gateways of every 10 people in the world, cause millions of people to become unemployed due to these technological innovations?

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